Analytics and data science company Ideal Prediction, has unveiled Scope, an automated monitoring service, which analyses the behaviours of voice traders and trading algorithms in line with the principles of the FX Global Code.
The firm says Scope is already in production and automatically monitors order and trade activity, evidencing that humans and algorithms adhere to governance and risk controls. It specifically highlights potential issues like last look, spoofing, flashing, layering, order violations, limit breaches, and P&L flags, the company adds.
Under the Global Code which was launched in May 2017, market participants are expected to review the behaviours of humans and algorithms, embed the principles into their day-to-day operations, sign a commitment to the Code, and post such evidence on public registers.
“Since the release of the Code, our firm focused on evidencing adherence to the principles, but the service additionally helps senior management sleep at night,” says John Crouch, founder and CEO of Ideal Prediction. “Clients specifically value the independence of our service, in addition to our analytics technology and high-frequency trading expertise.”
Ideal Prediction says is further refining the product by adding checks that are collaboratively defined and agreed. It adds it is working with a group of top tier banks, to create collective standards. “Not every check has a clear definition, so we collaborate with the FX community to provide standardised as well as custom checks appropriate to each firms’ business,” explains Crouch.